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Friday, August 25, 2017

THE BREWSPAPER / BIGGER FISH HELP SMALLER FISH

Editor’s note: While mega beer is
intent on crushing smaller competitors, craft beer makers large and small work
to help each other survive—here is an example of the latter:

GUEST BLOG / By Westcoastersd.com--With 28 years under their belt, the folks at Karl
Strauss Brewing Company have done a great deal: opening San Diego proper’s
first post-Prohibition Era brewery, building the county’s largest network of
brewpubs, contract brewing out-of-state and later bringing fermentation
operations back to America’s Finest City, building venues in Orange County and
Los Angeles. They could have rested on their laurels or become stagnant at any
point, but founders Chris Cramer and Matt Rattner continue to look for ways to
innovate and identify new revenue streams. The latest example of that is Karl
Strauss’ recent establishment of its own distribution arm.

The company has been laying
the framework for a distributorship for several years, but recently launched
delivery of beers from its first two distributed brands, new Oceanside-based
business Black Plague Brewing Company and Grantville’s four-year-old Benchmark
Brewing Company. The latter’s Orange County launch took place last week, though
Karl Strauss had been in talks with Benchmark for well over a year.

“We’re expanding on our
on-premise, self-distribution network in San Diego and Orange County to now
include a select group of local, independent breweries,” says Mark Weslar, Karl
Strauss’ vice president of marketing. “Delivering our own beers on-premise has
helped us develop an expertise selling to and servicing local bars and
restaurants. We look forward to helping some brewery friends build their
business.”

The first San Diego County
brewery to go from brewing to manufacturing and distributing not only its own beers
but those of fellow local brands was Stone Brewing. Founders Greg Koch and
Steve Wagner often cite that as a key moment in the company’s history, and a
business move that kept Stone from going out of business. After having many
doors slammed in their face by distributors unwilling to take a chance on their
new, small operation, they decided to do it themselves. In opening Stone
Distributing Co. in the late-nineties, they brought aboard brands such as
AleSmith Brewing and Coronado Brewing, later adding brands from across the
country as well as numerous international brewing companies. Today, that entity
is responsible for distribution of 44 brands—that like Karl Strauss’ portfolio
are all independent—throughout Southern California.

Karl Strauss has no immediate
plans to bring on additional brands, but plans to be selective when they do,
focusing on local and independent interests representing a partnership that
would make sense for all parties involved. Says Weslar, “It’s an exciting new
venture, but it’s also business as usual here at Karl Strauss with all of us
maintaining our focus on making, selling and distributing great beer.”

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Pillartopost.org is a media partner
with West Coaster Craft Beer Magazine and Website and San Diego Beverage Times.